GOVZ vs SCHD
iShares 25+ Year Treasury STRIPS Bond ETF vs Schwab US Dividend Equity ETF
Which is better, GOVZ or SCHD?
Long Term Government Bond against Large Cap Value.
SCHD has a lower expense ratio. GOVZ led over 1Y, 3Y and 5Y, SCHD over the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | GOVZ | SCHD |
|---|---|---|
| Expense Ratio | 0.10% | 0.06%Best |
| AUM | $324M | $112.1B |
| Dividend Yield | 5.17% | 3.00% |
| Holdings | 22 | 103 |
| YTD Return | +255.90%Best | +24.59% |
| 1Y Return | +240.53%Best | +28.14% |
| 3Y Return (annualized) | +47.15%Best | +15.58% |
| 5Y Return (annualized) | +12.00%Best | +9.90% |
| Volatility (annualized) | 125.4% | 15.2%Best |
| Max Drawdown | -59.6% | -16.9%Best |
| $10,000 over 5 years | $17,623Best | $16,032 |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | Long Term Government Bond | Large Cap Value |
| Inception | Sep 22, 2020 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 24, 2020 to Sep 10, 2026 (6 years).
GOVZ vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6 years both funds cover.
GOVZ vs SCHD Performance
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year GOVZ returned +240.53% while SCHD returned +28.14%. Year to date, GOVZ is up 255.90% versus a gain of 24.59% for SCHD.
Over three years, GOVZ compounded at +47.15% per year against +15.58% for SCHD; over five years the annualized figures are +12.00% and +9.90% respectively. Across the full 6-year window we track, SCHD has the edge at +15.01% annualized vs +7.68%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GOVZ has been the more volatile fund, with annualized monthly volatility of 125.4% compared with 15.2% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.6% for GOVZ and -16.9% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.06. They move largely independently of each other.
Fees and Cost Over Time
GOVZ charges 0.10% per year while SCHD charges 0.06%. On a $10,000 position that is $10 vs $6 annually, a gap of $4 per year that compounds over a long holding period. On income, GOVZ currently yields 5.17% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 18 holdings in GOVZ and 100 in SCHD, totalling 85.9% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 18 positions we hold weights for in GOVZ and 100 in SCHD, against full books of 22 and 103.
You are not choosing between two funds in isolation.
Whichever of GOVZ and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, GOVZ or SCHD?
GOVZ has an expense ratio of 0.10% while SCHD charges 0.06%. SCHD is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, GOVZ or SCHD?
Over the past year GOVZ returned +240.53% vs +28.14% for SCHD, so GOVZ leads on 1-year performance. Over the longest common window we track (6 years), GOVZ annualized +7.68% vs +15.01% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, GOVZ or SCHD?
GOVZ has been the more volatile fund at 125.4% annualized versus 15.2% for SCHD. Worst drawdown: GOVZ -59.6% vs SCHD -16.9%.
Should I hold both GOVZ and SCHD?
GOVZ and SCHD have a monthly-return correlation of 0.06, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, GOVZ or SCHD?
GOVZ yields 5.17% while SCHD yields 3.00%, so GOVZ currently pays the higher dividend yield.
Is SCHD better than GOVZ?
SCHD has a lower expense ratio. GOVZ led over 1Y, 3Y and 5Y, SCHD over the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.